These measures consist of three key interventions designed to help small and medium-sized enterprises access cheaper funding through the stock market, reduce non-wage costs for companies, and offer more favorable terms for restructuring non-performing loans (NPLs) for a broader range of borrowers (businesses and households).

The first two measures have already been announced by the Ministry of Finance, while the third is being led by the Ministry of Labour, as part of the government’s broader goal of boosting Greece’s economic growth potential. These initiatives focus on a new bill to upgrade the stock market, expanding criteria for the out-of-court settlement mechanism for non-performing loans, and reducing social security contributions for overtime, night shifts, and holidays, as announced by Minister of Labour Niki Kerameos.

With fiscal stability secured and tax cuts for the middle class scheduled for announcement in September at the Thessaloniki International Fair, the government, as previously stated by the Minister of Finance, now prioritizes addressing specific challenges faced by large segments of businesses and households in order to improve the economic environment and achieve higher economic growth rates.

Stock Market Upgrades
The bill aimed at upgrading the capital market introduces new ways for small and medium-sized businesses to access cheaper funds via the stock market. The key measures include:

1. Increased Expense Discounts for the inclusion of SMEs in the stock market. Specifically, the expense discount for preparing SMEs for listing on the stock exchange is doubled.
2. Reduction of Tax on Corporate Bonds from 15% to 5% on interest from listed corporate bonds acquired by Greek tax residents. This creates a level playing field for domestic and foreign investors in terms of interest income, regardless of where the bonds are traded (Greece, EU, non-EU countries).
3. Extension of Incentives for Angel Investors and Investments in the Alternative Market. Angel investors can now deduct 50% of their contribution from taxable income, up to a limit of €300,000.
4. Increase in Revenue Limit for the issuance of a prospectus from €5 million to €8 million per year for public offerings of securities. This reduces costs for small and medium-sized companies accessing the stock market.

Non-Performing Loan Adjustments
The new measures from the Ministry of Finance will double the income and asset criteria for eligibility, allowing more borrowers to access the out-of-court settlement mechanism. This will enable them to restructure their loans with favorable terms, including a debt reduction of up to 28%. Previously, only vulnerable households were eligible, but now, debtors with non-performing bank loans of up to €300,000 can apply.

As of now, 30,515 NPLs amounting to €10 billion have been restructured under the previous scheme. With the new adjustments, a significant increase in loan restructurings is expected, leading to a higher total value of NPLs being resolved.

Contribution Reductions
The Ministry of Labour is promoting a reduction in social security contributions for overtime, extra work, night shifts, and holidays, as announced by Niki Kerameos. This measure is aimed at reducing businesses’ non-wage costs and incentivizing the reduction of undeclared work while boosting employment. Since 2019, social security contributions have been reduced by 5.5 percentage points.